First-tier Tribunal Determines Reasonable Costs for Tenant's Notice

OUTCOME: Allowed

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FIRST-TIER TRIBUNAL [NAME] (RESIDENTIAL PROPERTY) Case reference : LON/00BK/OC9/2024/0089 HMCTS code (paper, video, audio)

Paper Remote Property : Flat 88 Park West [ADDRESS] [POSTCODE] [ADDRESS] [POSTCODE] Applicant : [redacted] : Wallace LPC Respondent : [redacted] : [COUNSEL] of [NAME] : [NAME] to decide the costs to be paid Under Section 60(1) of the Leasehold Reform Housing and Urban Development Act 1993 Tribunal : Judge Daley

Venue and Date of Paper determination : 18 October 2024 Determined remotely Date of decision

Re Amended : 21 October 2024 17 March 2025

Re Amended DECISION

This has been a remote determination; The form of remote determination was a paper determination. An in-person hearing was not held because all issues could be determined on the papers. The documents that the Tribunal were referred to are in an electronic bundle of 252pages, the contents of which have been noted.

2 I exercise the powers under Rule 50 of the Tribunal Procedure (First-tier Tribunal) ([NAME]) Rules 2013 to correct the clerical mistake, accidental slip or omission, to include a finding that the Applicant’s cost shall include the sum payable for Courier’s fees. I have corrected the original Decision to include the courier’s fees which were omitted in error. Signed: Judge Daley Dated: 12.11.2024 I have further amended the Decision to correct the spelling of the Respondent’s surname from [RESPONDENT] [NAME] to [NAME]. Signed: Judge Daley Dated: 17 March 2025

Decision The Tribunal has determined that the cost to be paid by the Applicant in accordance with Section 60 (1) of Leasehold Reform Housing and Urban Development Act 1993 (“the 1993 Act”) I. [ADDRESS] [POSTCODE] Legal Costs in the sum of £1926.00 plus VAT of £385.20. And Courier’s fees in the sum of £15.91 II. Surveyor’s fees of £1000.00. In the total sum of £3327.11.

III. [ADDRESS] [POSTCODE] Legal Costs in the sum of £2099.50 plus VAT of £419.90. And Courier’s fees in the sum of £15.91 IV. Surveyor’s fees of £1000.00. In the total sum of £3535.13 V. [ADDRESS] [POSTCODE] Legal Costs in the sum of £2110.50 plus VAT £422.10. And [NAME] fees in the sum of £15.91 VI. Surveyor’s fees of £1000.00. In the total sum of £3548.51. Background 1. The background is as set out in the Applicant’s [NAME] and Section 60 costs Schedule. In brief the Applicant who is the leaseholder seeks a determination on the costs payable for the investigation work undertaken

3 and up to and including the service of the counter notice in respect of the premises known as Flats 88 Park West, 360 Park West and 627 Park West London W2.

2. The costs at issue for each of the premises was as follows-: Flat 88 Park West £4170.91. Flat 360 Park West £4301.71 and Flat 627 Park West £4305.31.

3. The Tribunal was provided with submissions on behalf of both the Applicant and Respondent. 4.

5. The Respondent issued a notice of claim dated 4 August 2023.On 5 October 2023 the Applicant issues a counter notice.

6. Following the issue of the counter notice, the respondent failed to make an [NAME] to the Property Tribunal for the premium to be determined.

Accordingly, the Notice of Claim was deemed withdrawn. The statutory costs were not agreed.

7. Accordingly on 1st July 2024, the Applicant made an [NAME] for the costs to be determined in respect of each of the premises.

8. In their written submission the applicant set out that upon receipt of the notice the applicant was required to undertake various enquires.

9. The Applicant submitted that the cost which were incurred by [APPELLANT](the landlord) in accordance with Section 60(2) of the Act are costs [NAME] would incur had it been personally liable.

10. The Applicant in their submissions set out that the Housing and Urban Development Act 1993 (“The 1993 Act” was complex in nature. The Applicant in the submissions stated that this merited the involvement of a partner and that the time spent was reasonable, and accurately set out the work required.

11. At paragraph 21 of the Applicant’s submissions the Applicant set out that the valuers fees were properly recoverable from the Respondent in accordance with Section 60(3) of the 1993 Act.He submitted that the individual lease extension valuations range from £950.00-£1500.00. The Applicant submitted that the fees which ought to have been recovered were £1350 plus VAT. Which he submitted was reasonable.

12. The Respondent submitted a one-page letter as their submission which states as follows-: 88 Park West - Landlord's Legal fees (including VAT) - £1,250.00 88 Park West - Landlord's Valuation fees (including VAT) - £1,200.00 88 Park West - Landlord's Land Registry fees (including VAT) - £18.00 88 Park West - Landlord's Courier fees (including VAT) - £15.91 360 Park West - Landlord's Legal fees (including VAT) - £1,250.00 360 Park West - Landlord's Valuation fees (including VAT) - £1,200.00 360 Park West - Landlord's Land Registry fees (including VAT) - £10.80 360 Park West - Landlord's Courier fees (including VAT) - £15.91

4 627 Park West - Landlord's Legal fees (including VAT) - £1,250.00 627 Park West - Landlord's Valuation fees (including VAT) - £1,200.00 627 Park West - Landlord's Land Registry fees (including VAT) - £14.40 627 Park West - Landlord's Courier fees (including VAT) - £15.91

The Tribunal Decision and reasons

13. The Tribunal considered the submissions of both parties, it reminded itself of the law, that the cost incurred had to be assessed “if the circumstances had been such that he was personally liable for all such costs.” That is, that the Applicant was responsible for paying the cost without the possibility of recovery.

14. The Tribunal considers that such a party should be considered as having a reasonable but not excessive budget for legal costs, and that such a party would where possible, keep a careful eye on the costs, This would involve taking steps to reduce costs and ensure that the work being undertaken was proportionate; and only what was necessary to deal with the claim. where appropriate, such a party would seek and would in all possibility have a discount.

15. The Tribunal has applied this assessment of what a reasonable paying party would expect when assessing the costs. It has also stood back and used its knowledge and experience to consider whether the costs, are reasonable and proportionate, and whether a paying party, would ask those who assist to take steps to further reduce or keep such costs consistent.

The Solicitors Costs

16. The Tribunal accepted the submissions of the Applicant, it noted that there was a lack of detailed objection from the Respondent concerning the costs, as no reasons were given for their objections. Given this it has considered the submission of the Applicant. It accepted that the work had been undertaken by a partner, and that the rate increased during the period when legal work was undertaken.

17. The Tribunal in applying a reasonable approach to the legal cost, consider that it would have been considered reasonable for the rate to stay the same throughout the duration of the work.

Accordingly, the Tribunal has applied the rate of £520.00 per hour.

The surveyor’s fees

18. The Tribunal has considered the surveyors fees, The Tribunal noted that in order to serve a counter notice, an initial survey would be undertaken. The Tribunal find that this would not be a detailed valuation report, it would merely be to provide the Respondent with a valuation which could be put before the Applicant in the counter notice. Given this the Tribunal

5 has considered the range relied upon by the Applicant and considered that the sum payable for such work would be no more than £1000.00 plus vat 19. The Tribunal therefore determines that costs for each of the premises as follows of -: 1. [ADDRESS] [POSTCODE] Legal Costs in the sum of £1926.00 plus VAT of £385.20. Surveyor’s fees of £1000.00. And [NAME] fees in the sum of £15.91 2. [ADDRESS] [POSTCODE] Legal Costs in the sum of £2099.50 plus VAT of £419.90. And [NAME] fees in the sum of £15.91 3. Surveyor’s fees of £1000.00. 4. [ADDRESS] [POSTCODE] Legal Costs in the sum of £2110.50 plus VAT £422.10. And [NAME] fees in the sum of £15.91. Surveyor’s fees of £1000.00 The Tribunal determines that the reasonable sum payable for Section 60 (i) costs is as set out above. Signed: Judge Daley Dated 21 October 2024 Amended 12.11.2024

Right of Appeal

1. If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber) then a written [NAME] for permission must be made to the First-tier Tribunal at the Regional office which has been dealing with the case.

2. The [NAME] for permission to appeal must arrive at the Regional Office within 28 days after the Tribunal sends written reasons for the decision to the [NAME].

3. If the [NAME] is not made within the 28-day time limit, such [NAME] must include a request for an extension of time and the reason for not complying with the 28-day time limit; the Tribunal will then look at such reason(s) and decide whether to allow the [NAME] for permission to appeal to proceed despite not being within the time limit.

4. The [NAME] for permission to appeal must identify the decision of the Tribunal to which it relates (i.e., give the date, the property and the case number), state the grounds of appeal, and state the result the party [NAME] the [NAME] is seeking.

6

Appendix one Section 60 of the 1993 Act Costs incurred in connection with new lease to be paid by tenant. (1)Where a notice is given under section 42, then (subject to the provisions of this section) the tenant by whom it is given shall be liable, to the extent that they have been incurred by any relevant person in pursuance of the notice, for the reasonable costs of and incidental to any of the following matters, namely— (a)any investigation reasonably undertaken of the tenant’s right to a new lease; (b)any valuation of the tenant’s flat obtained for the purpose of fixing the premium or any other amount payable by virtue of Schedule 13 in connection with the grant of a new lease under section 56; (c)the grant of a new lease under that section; but this subsection shall not apply to any costs if on a sale made voluntarily a stipulation that they were to be borne by the purchaser would be void. (2)For the purposes of subsection (1) any costs incurred by a relevant person in respect of professional services rendered by any person shall only be regarded as reasonable if and to the extent that costs in respect of such services might reasonably be expected to have been incurred by him if the circumstances had been such that he was personally liable for all such costs. (3)Where by virtue of any provision of this Chapter the tenant’s notice ceases to have effect, or is deemed to have been withdrawn, at any time, then (subject to subsection (4)) the tenant’s liability under this section for costs incurred by any person shall be a liability for costs incurred by him down to that time.